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ZF launches new Chennai plant with 5000 job openings

By Nithya Bose in Business News, posted February 15, 2024

German auto component maker ZF Friedrichshafen has announced plans to create 5,000 jobs in Chennai with new expansion.

The company will inaugurate a new plant in Oragadam, Chennai.

This new facility marks ZF's tenth in Tamil Nadu and its nineteenth across India, representing a significant investment of ₹1,800 crore.

The firm commits to gender diversity in job creation, as more than 80 percent of the plant's workforce will comprise women.

ZF has invested ₹175 crore and plans to inject an additional ₹30 crore within the year, aiming to achieve a production value of ₹100 crore by year's end.

The plant is set to serve both the domestic and international markets.

During the plant's opening ceremony, Tamil Nadu's Industries Minister, TRB Rajaa, highlighted ZF's substantial contribution to the state's economy.

The investments totaled ₹3,500 crore, and nearly 9,500 jobs were created.

The company's plans would increase job opportunities by 8,500 over the next ten years.

Rajaa praised Tamil Nadu as a prime location for investments, emphasizing its status as a hub for R&D, automobile manufacturing, and green energy, including electric vehicles.

The state government's Naan Mudhalvan scheme aims to tailor talent to meet investor needs across Tamil Nadu, ensuring high-quality job creation in regions like Oragadam.

ZF's ambitious target is to achieve €3 billion in sales from India by 2030.

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It focuses on commercial vehicles, its traditional area of strength, and passenger vehicles, including ICE (Internal Combustion Engine) and EVs.

Akash Passey, ZF Group India's President, pointed out the growing opportunity in India's EV market for passenger cars.

The Chennai tech centre, which employs around 700 engineers, is ZF's second-largest R&D unit after Hyderabad.

Additionally, the company's Coimbatore plant is undergoing expansion to enhance its production of transmissions and axles for both Indian and global markets.

This site is also a key supplier of transmission systems for windmills.

ZF explores more opportunities within the Indian market, particularly in renewable energy, aligning with the government's focus.

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